Real estate: Delhi, Mumbai among top 44 cities globally with highest surge in housing prices

Mumbai and Delhi have secured notable positions in the global housing market, ranking third and fifth respectively among the top 44 cities in terms of housing price appreciation during January-March 2024, as per Knight Frank's "Prime Global Cities Index Q1 2024" report.

Housing price surge in Delhi, Mumbai

In the same period last year, Mumbai was ranked sixth and Delhi seventeenth. This year, Manila in Phillipines topped the list with a remarkable 26.2% annual growth in housing prices, followed by Tokyo at 12.5%.

Mumbai recorded an impressive 11.5% year-on-year growth in prime residential prices during the first quarter of 2024. Meanwhile, Delhi saw a significant rise from its 17th rank in the previous year to 5th position, with a 10.5% YoY growth.

However, Bengaluru experienced a slight decline in its ranking, moving from 16th place in Q1 2023 to 17th in Q1 2024, despite recording a 4.8% YoY growth in residential prices.

The Prime Global Cities Index (PGCI) by Knight Frank is a valuation-based index that tracks the movement of prime residential prices across 44 cities worldwide, using data from its global research network. The index monitors nominal prices in local currency.

Shishir Baijal, Chairman and Managing Director at Knight Frank India, highlighted the global trend of strong demand for residential properties, particularly in the gateway markets of Asia-Pacific and EMEA. "Like its peers in these regions, the improved rankings of Mumbai and New Delhi on the Prime Global Cities Index were underscored by the resilience in sales growth volume. We expect the momentum of sales to remain stable over the next few quarters as the economic conditions are likely to remain broadly unchanged," Baijal said.

Knight Frank's report also noted a strengthening in global housing price growth. Across 44 cities, the average annual house price growth rose by 4.1% in the 12 months leading to March 2024. "Prices are rising at their fastest rate since the third quarter of 2022," the report added.

This surge in housing prices reflects a robust global demand, with significant contributions from major cities like Mumbai and Delhi, highlighting their growing importance in the international real estate market.

Also read: Rising property prices in India: Delhi-NCR sees highest annual rise of 16% among 8 cities